Asian stock markets showed mixed results on Tuesday, with Chinese shares seeing a decline after a broad rally on Wall Street. The rally was driven by hopes that the Trump administration may take a more targeted approach to tariffs in the upcoming week.
U.S. futures edged lower, and oil prices remained stable.
Key Market Movements in Asia
Japan: Tokyo’s Nikkei 225 index gained 0.3%, reaching 37,733.22.
South Korea: The Kospi dropped 0.5%, closing at 2,617.11.
Hong Kong: The Hang Seng index fell 2.2%, closing at 23,387.86, as tech-related stocks experienced heavy selling.
Xiaomi’s Hong Kong-listed shares dropped by 5.4%.
Meituan lost 4.2%, and Alibaba saw a 3.4% decline.
China: The Shanghai Composite index fell by 0.2%, closing at 3,364.05.
Taiwan: The Taiex rose by 0.6%.
Thailand: The SET index lost 0.2%.
U.S. Tariff Concerns Impact Market Sentiment
The stock market has been fluctuating between optimism and concern due to President Donald Trump’s fluctuating stance on tariffs. A new round of tariffs is scheduled for April 2, but Trump has been cautious in detailing his plans. On Monday, he mentioned that he might implement “reciprocal” tariffs but suggested that they could be “nicer” than expected.
This uncertainty has caused volatility, particularly in Chinese markets, which had seen strong growth. Trump’s recent comments also added to the tension, including a post on Truth Social, where he stated that Venezuela, which has been “very hostile” to the U.S., will face a 25% tariff on oil exports starting April 2.
Venezuela, which sells a large portion of its oil to China, could see these tariffs significantly impact trade relations, especially as China purchased 68% of Venezuela’s oil in 2023.
U.S. Stock Market Performance on Monday
S&P 500: The index jumped by 1.8%, closing at 5,767.57.
Dow Jones Industrial Average: Rose 1.4%, closing at 42,583.32.
Nasdaq Composite: Gained 2.3%, closing at 18,188.59.
Despite these gains, the S&P 500 is still down 1.9% for the year due to concerns that a trade war could hurt economic growth and increase inflationary pressures.
Sector Performance and Notable Stock Moves
Monday’s rally was broad, with 84% of S&P 500 stocks finishing higher. Technology stocks were particularly strong, contributing significantly to the market’s upward momentum.
Nvidia: Up 3.2%.
Apple: Rose 1.1%.
Tesla: Surged 11.9%, although it is still down about 31% for the year.
23andme: Lost more than half its value after announcing it had initiated voluntary bankruptcy proceedings.
In other notable market movements, AZEK Co. saw a 17.3% increase after announcing a cash-and-stock deal with Australia’s James Hardie Industries valued at $8.75 billion. This follows a large deal in the building materials sector earlier in the week.
Economic Updates to Watch
This week, Wall Street is awaiting several key economic updates:
The Conference Board’s consumer confidence survey for March will be released on Tuesday.
On Friday, the U.S. government will release the Personal Consumption Expenditures (PCE) price index for February, a key measure of inflation.
The Federal Reserve has been cautious about inflation, which remains slightly above its 2% target. In late 2024, the Fed began cutting interest rates to ease borrowing costs, though the balance between stimulating the economy and controlling inflation remains a concern.
Oil and Currency Markets
Oil: U.S. benchmark crude remained steady at $69.11 per barrel. Brent crude also stayed unchanged at $72.37 per barrel.
Currencies: The U.S. dollar weakened against the Japanese yen, falling to 150.56 yen from 150.70 yen. The euro strengthened slightly, rising to $1.0808 from $1.0803.
The stock market continues to navigate a mix of global uncertainties, with traders closely monitoring developments in trade policy, inflation, and geopolitical tensions.
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